Accounting

BENEFITS OF VIRTUAL CFO SERVICES: WHY IS IT A GROWING TREND?

Posted on 01/06/2021

There is a common misconception that a bookkeeper and an accountant are enough to run the financial aspects of the company. 

The role of a bookkeeper limits to maintaining the daily transactions in the organization. In some cases, the bookkeeper can extend their services during the accounting season but with limited expertise. 

The role of an accountant is to get the data from the bookkeeper and work at the end of every financial year to tally the accounts and help the company save from paying a huge tax. 

The roles mentioned above contribute to the successful daily operations of the organization. However, when it comes to the bigger picture to sustain the organization for a longer period, a financial expert is required to manage the cash flow, create budgets, analyze expenses, understand profitability, predict financial risks, and devise a winning financial strategy. 

And who plays these roles? A Chief Financial Officer, a.k.a. A CFO. 

Business owners who wear multiple hats often sideline these tasks for the end and endeavor at the last minute to fix things. But, little did they realize that the financial department is the lifeline of an organization. It needs attention and planning daily. 

Regardless of the company’s size, the CFO is mandatory if you want to maintain an organizational balance. From ensuring compliance to financial planning and deciding investments, your company needs a CFO to scale the growth. And a CFO will require a hefty compensation. However, if you do not have the budget to compensate the CFO’s monthly salary requirements, we recommend hiring a virtual CFO (v CFO) and get the best virtual CFO services.

Who is a Virtual CFO? 

A virtual CFO (or a vCFO) is a financial service provider, an operational and financial professional that executes the duties of a conventional CFO. The only difference between a traditional CFO and a virtual CFO is that the latter works remotely, on a contractual, part-time basis. 

Working with a virtual CFO is like outsourcing your finance department to an expert outside your company. 

Virtual CFOs are a great option for companies that may not be able to match the salary demands of a dedicated, full-time CFO. A virtual CFO works no lesser than the in-house CFO. Your company will benefit equally as your virtual CFO will stand at the helm of your financial department.

Virtual CFO services 

Today, with new technologies booming often, data is easier to accumulate. It has quite loosened up the time of accountants to draw multiple interpretations of the data and produce reports for each. The accountant’s expertise ends there. For the financial well-being of the company, a CFO has to step up and work on the insights to drive the business forward and make operational decisions. No other executive other than the CFO could see the story behind the numbers and arrive at a decision that will serve the welfare of the company. Only a (virtual) CFO can generate value in strategic and operational ways. 

Here are a few of the services a virtual CFO might provide:

• Assistance with determining annual financial and strategical goals

• Communicating financial goals to the stakeholders

• Financial planning that will entail

  • forecasting and cash flow management
  • analyze and identify opportunities 
  • scenario modeling
  • planning and annual budgeting

• Opportunity identification

• Forecast creation

• Financial statement creation, evaluation, and reporting

• Financial risk management that will contain

  • cost-benefit mapping
  • contingency planning

• Cost management that includes

  • productivity and talent evaluations and direction
  • supply chain analysis and insights
  • capital-investment review and due diligence

• Funding calculation and management

• Debt minimization and administration

• Organizational transformation

• Fundraising support

Does My Business Need a Virtual CFO?

Now that you understand who is a virtual CFO and what are the best virtual CFO services, it is time to identify if your business needs one. It is a direct answer, however, we will get to the specifics and tell you when your business needs virtual CFO services. 

– Your business is intensifying

When it was just a handful of you, probably your finances would have been manageable. 

Eventually, when your resources, contacts, and administration are intensifying, financial components will add to it. It is an indication that your bookkeeper or an accountant wouldn’t suffice to provide you a financial solution to handle the complexity. 

– Your business is growing 

Planned growth is one, and rapid growth is another. When you are growing as planned, you have everything in your control. With rapid growth, your finances will be at a breakneck speed. Getting the best virtual CFO services will help you navigate in control through unprecedented growth. Besides, a virtual CFO will also help you plan the next episodes of your business in a streamlined manner. Your business’s pulse and cash flow will be in control to handle the revenue influx. 

– You want to explore untapped areas of your business

The economy is on a roller coaster. There are changes every day, and it depends on how you want to utilize that change for your business’s growth. A virtual CFO will help you understand if you should utilize that volatility or bolster your present situation during economic distress. 

– Your financials are undergoing apocalyptic proportions

Financial catastrophes are inevitable. The solution is to be cognizant of the situation and comprehend why it is happening. And, if you don’t have an answer for it, a virtual CFO will be able to address that gap. He will also help you sail through the financial distress safely. 

– You lack financial comprehension 

A business is all about making decisions and eventually growing to make informed decisions. A virtual CFO can help you control your business’s decision-making handgrip from the beginning. From managing your books and ledger transactions to guiding your mergers, virtual CFO services will help. 

11 benefits of virtual CFO services

1. Flexibility and customized services

When you outsource virtual CFO services, you are defining the terms, time, and cost only for the work hours. You can scale it either up or down based on your requirements. In the end, you will only pay for the deliverables and time spent for your business. 

2. Broad Experience

Virtual CFOs work with diverse industries. They would have more knowledge, experience, expertise, and insights on different business scenarios. That knowledge will translate into a custom perspective for your business. 

3. Accounting Expertise

You can be demanding in hiring a virtual CFO that holds an accountant degree. In addition to their CPA degree requirements, they would have a myriad of knowledge and expertise working with other businesses. Besides, they will be updated about the latest market trends because their profession demands so. 

4. A Different Perspective

As a business owner, you will be laser-focused, unknowingly limiting yourself to seeing things from a different perspective. 

Hiring a virtual CFO for your business can give you new ideas that will overhaul your finance departments and also identify other growth opportunities. 

5. Ability to handle challenges

A virtual CFO with an accountant degree can bring the knowledge, expertise, and also problem-solving skills required for managing complicated accounts. You can hit the brief of two jobs with a virtual CFO.

6. Expert reporting

An experienced virtual CFO knows to create streamlined and well-organized reports. In addition, his accounting skills will serve as an auxiliary to create customized client reports that will give comprehensive deets required to make informed and well-thought-out business decisions. 

7. Software and systems recommendations

There is a lot of financial software available in the market for organizations today. The choices are plenty which only an expert can decide what is best for the company.

A virtual CFO will have had his hands-on on diverse products and systems. They should be able to give you experiential advice on which systems, software, and products will match your business requirements. It will save you from making the expensive mistake of engaging with a wrong choice.

8. Well-established reputation

Onboarding a virtual CFO means you are bringing in an expert who has established his expertise in the market with diverse clients. This way, you are finding means to gain access to your virtual CFO’s other clients. Besides, he will be the right person to connect you with business leaders if required. Refine your hiring process right to enjoy the benefit.

9. Better problem-solving skills

Every business will have its share of problems as they expand. A virtual CFO can help you deal with financial catastrophes and emergencies in a way you could not have solved. The problem-solving abilities will be a lot better, refined, and efficient to bounce back sooner, if not immediately.

You can enjoy the advantage of skipping a few grave mistakes by leveraging the virtual CFO services.

10. Faster resolutions

Virtual CFOs are known for bouncing back quickly from issues and providing quicker, yet intellectual resolutions to the problems. Over years, they will have built the experience to enter a crisis mid-way and take it to resolution from there. From a financial point of view, they will be able to quickly assess the problem, gather information, refine financial reports, implement efficient accounting practices, scale towards completion, and forecast the results.

11. An experienced team player

Virtual CFOs possess emotional intelligence, leadership skills, and exhibit team-player qualities that will help them work with various individuals. They put forward financial expertise and assist your team members to achieve success as an entity. 

How to get started with a virtual CFO?

We can give you the best virtual CFO services, best practices, and excellent results. Our virtual CFO services entail budgeting and forecasting, financial reporting and analysis, strategical goal alignment, and service provider relationships.

Engagements with our virtual CFOs can range from one day a week to 4-5 days a week with the versatility to stop the contract any time, we recommend at least six months. Ideally, this time frame will be required for a business to understand the progress it makes.

Outsource your finance department to us and let us help you grow your business. Contact us today to learn how we can alleviate your financial burdens and help you understand your business’s growth potential.

Topics: Accounting


Looking for Accounting Service in Dover and Nationwide?

Posted on 24/06/2020

Looking for Accounting Services in Dover?

You’d be pleased to know that Velan offers offshore and outsourced Bookkeeping Services to CPA firms, SMEs, Retailers, and Real Estate/Property Management companies, not just in Dover, but at a global level. We strictly adhere to Generally Accepted Accounting Principles (GAAP), International Accounting Standards (IAS issued by IASC), and International Financial Reporting Standards (IFRS issued by IASB).

We’re ISO 27001:2013 and ISO 9001:2008 certified, and practice the highest standards of compliance and security.

What do we offer?

 Setup of accounts

 Cleanup of books

 Recording of all expenses and income

 Maintaining various ledger, and sub-ledger accounts

 Fixed assets accounting

 Reconciliations – Bank accounts, Credit cards, Vendor and Customer Statement, Inter-company, Ledger and Sub-Ledger

 Month-end and year-end closing

 Consolidated financial reporting

MIS reporting

Why should you outsource Accounting Services?

A significantly lower cost compared to a traditional in-house bookkeeper or a local accountant is one of the major advantages of outsourcing your bookkeeping. Customization is another benefit as the bookkeeping solution can be tailored according to the specific needs of the client while this flexibility cannot be expected from a traditional accountant.

Scalability which is available in an outsourced solution becomes vital for every growing business. Service providers like Velan often have tonnes of experience dealing with multinational clients and can help businesses navigate complex tax regulations and compliance requirements.

Is this secure?

Bookkeeping service providers like Velan employ high-security encrypted web servers and foolproof user-based access levels for all its employees. By utilizing quality bookkeeping tools like QuickBooks, they ensure a secure pathway for all your transactions and guarantee accuracy and privacy. Almost all of their servers are located in highly secure compounds, thereby offering maximum security for sensitive client data.

Why not a traditional bookkeeper?

An outsourced bookkeeping service can offer you their services throughout the day with consistent support and maintenance. We can solve your technical and functional problems seamlessly. As mentioned before, you can hire an outsourced service provider at just a fraction of the cost of an in-house permanent bookkeeper, significantly reducing your operational cost. Equipped with a robust infrastructure, we can seamlessly complete a process or a task faster than any traditional bookkeeper.

What are the technologies involved?

Equipped with the experience and proficiency in handling the latest tools available, Velan’s bookkeepers can offer customized solutions, depending upon the size of the business. Here are some tools we are proficient in.

  • QuickBooks
  • Peachtree
  • Quicken
  • Caseware
  • Master Builder
  • MYOB and SAGE
  • Intuit ProSeries
  • Intuit Lacerte
  • Simply Accounting
  • Business Vision
  • Business works
  • Creative solutions accounting
  • Net Suite

Why Velan?

Velan primarily focuses on offering uninterrupted and seamless bookkeeping solutions at an affordable price. Equipped with a comprehensive array of solutions with frameworks to assist businesses of all sizes and industries, Velan has amassed lots of experience dealing with clients in various countries. We have built up a solid infrastructure with the best people available to offer personalized solutions, where the client can customize the services according to the needs and wants of the business. Choose Velan and values will be delivered.

Topics: Accounting , Outsourcing Accounting


Top 7 Tips to Get Clients to Pay on Time & some Bonuses

Posted on 08/07/2019

You’ve delivered your services or product(s) right on time, and your client was exhilarated with it, but there’s a twist. The invoice you’ve sent are several days late, and this isn’t the first time that this has happened. Your might not have considered using Outsourced Accounting Bookkeeping Services to get your clients to pay on time.

Irrespective of the business you are in, you will experience late-paying clients. As a matter of fact, almost 80% of businesses receive their payments well past the due dates. Approximately 75% of businesses have had clients who have not paid their invoices for at least 40 days.

Looking at the circumstances, customers get the benefit of the doubt. Most clients are amicable and are looking on paying you eventually. Their late payments hurt your income and ruffle-up your budgets. That’s not good for your business’ financial health. It’s wise to nip the problem in the bud and take action to preclude new clients to become late payers.

Where should you start? To help remind your customers to pay on time, we suggest using one of the following tactics:

1. Maintain Superb Client Relationships

Your client will want to pay you on time when you make them feel special and not a revenue machine. Always maintain a friendly relationship with your customers and let them know they’re special. There are many things to make them feel they’re not only a client, but a valued member of your team. Help solve a personal problem, feature them in your blogs, or provide a one-time service bonus.

People always want to feel special, and our brains fire up when we’re mentioned by our names. Clients are more than willing to go out of their way if you do the same for them first, and you’ve just learnt the Principle of Reciprocity.

As a business, you need to always remember that the clients may have hundreds or even thousands of employees. Make a list of key contacts and send them a personalized gift or a thank you note. A simple hand-written or printed note telling them they’re important will go a long way when the time arrives for them to pay your invoices.

2. Having Precise Payment Terms

Sometimes, clients assume wrong about your payment terms. They assume you function on a “Net 21,” “Net 30,” or even on a “Net 21” basis or on specific days, like the 1st and 15th of a month. All your terms and conditions should be worded-out clearly. There should not be any gray area.

Add relevant sections in your contracts that explain the due dates, payment modes, and other required terms in detail. While working on this, check if your customers require specifically formatted invoices or how you should submit your invoices to be in compliance with their system.

Learn how having Outsourced Accounting Bookkeeping Services helps you reduce time on submitting your invoices and doing follow-up with your clients.

3. Automating Your Invoicing Process

There are times when you are busy in your project and you simply forget to send the invoices to your clients. Sending invoices through mail takes long, risks getting lost, and adds to billing expenses. Automating the process using invoicing software and accounting software gives the clients the invoice quickly. It also saves on mail expenses, paper, and keeps your invoice at the top of client’s mind.

You should schedule email reminders for payments so you are not chasing late-paying clients. Outsourced Accounting Bookkeeping Services is an invaluable option for staying on top of your Accounts Payables and Accounts Receivables. Automated solutions have payment reminders and can be linked to online payment clearance providers. It is advisable to invest in a system that automatically sends the invoices once you complete your projects.

4. Implement a Recurring Payment System

If you are working long-term with your clients, you should seriously consider a Recurring Payment System. This allows you and the client to focus more on the project and not be bothered by billing schedules and invoice due dates. It’s easy to get this up and going when you provide the same services every month.

With varying payment dues and dates, you are more likely to run into difficulties. Your client shouldn’t mind payments going out automatically for expenses without reviewing them. If they want to know, sit down and set a basic amount for all recurring invoices. If you have additional costs, show it to the clients before you bill them.

Making sure your automated invoicing solution sends invoices and receives money from clients is always a plus. You should make sure that this automated solution allows for recurring payments, allowing you and your client to focus on work. You will save time in preparing and sending invoices and your client will save time paying them.

5. Client Rewards and Recognition

How many times have you sent a “Thank You” note or a gift to your client; not to pay invoices, but to let them know that they are appreciated? A few times over the years, never? Doing this is not bribing them to pay early; you are just making them feel appreciated. Writing a handwritten “Thank You,” “Thank You for your business,” or even a “You’re a great client,” will go a long way other than clearing your pending invoices or them being paid quickly

You are giving your clients a cause to pay attention and provide a discount for prompt or early payments. This small incentive encourages your clients to clear your dues, but penalizing them for late payments is also warranted. You have to put a percentage rate for missing deadlines, but you must put the emphasis on prompt payments. You can offer a discount of 2% or even 5% for early payments.

6. Direct Invoice Payment Links

Clients might be willing to pay you immediately, but they have to open another program, log-in, and then pay you. They might be called away from their system and the session would time out before they got back. The clients don’t like repeating these steps again and again. They’ll leave it for later and eventually forget or it will be delayed.

Investing in an invoicing system supporting integrated payments like payment processor buttons reduced the time for payment processing. Your customers are a click away from paying you for your job. This reduces any distractions that might stop them from the payment task in front of them. The easier the payment process, the quicker you get paid.

In an ideal world, invoices are paid as soon as they are presented. In the real world, you need a helping hand for keeping your cash flow flowing. Using Outsourced Accounting Bookkeeping Services helps you process invoices, present it to clients, follow-up, and receive payments will reduce your financial stress.

7. Ask for An Upfront Payment and then Smaller Payments

An excellent way for lowering risk and making clients pay on time is by splitting the payments into smaller portions. You should do this will all clients. If you have clients who are already paying you, then implement this from their next project. It should be your golden standard for invoicing. You should split payments in parts like 30/30/20/20, 25/25/25/25, 20/20/30/30, 35/25/20/20 or any combination that you are comfortable with.

An agreed upon pre-payment amount before starting work on the project, the next amount after finishing the first draft. This ensures that you have received an amount before you reach feedbacks and changes to the project, or the half-way point. Now, after you have successfully implemented all the feedback, changes, critiques and the client is satisfied, ask for the pending amount.

It is better to ask for an upfront deposit when working on large projects or huge orders from the client. You should offer moderate payment options instead of one big lump sum. This ensures that you have cash flowing till the completion of the project and clients would easily be able to make those payments.

Nevertheless, when working on large projects, it is best to ask for a deposit to cover expenses.

BONUS TIPS to get paid quickly

8. Delivering Services on Time

It is not enough to look to your customer for late payments when you have not delivered your services on time. You should introspect and see if you fulfilled your customers order on time. If you’re a business and you complete the project late you can’t send then invoice. You have to account for that when you prepare your invoice.

Make sure you have enough manpower to be able to complete the project on time. Your customers will be happy and pay you quicker when you send your invoices to them for clearing. The quicker you complete your projects the quicker you get paid. There is no point in being frustrated when you deliver late on your projects, but expect the client to pay your invoices on time.

9. Quick Invoicing

Send the invoice to your customer as soon as the work has been completed. This results in the work and payment being linked together. You will find that by linking these two together, you will receive your payments quicker.

When your project work has been completed, there is no reason to delay the invoicing part. Using Outsourced Accounting Bookkeeping Services help you to reduce the delay in billing your client and providing them with invoices at the earliest.

10. Use Outsourced Accounting Bookkeeping Services

There is no denying the fact that there is always the need for outsourcing services in every field. With a dedicated Outsourced Accounting Bookkeeping Services team you can concentrate on providing your client with the best service possible. The team would be an extension of your business and would ensure prompt billing and follow-up to clear pending dues and payments.

Relying on the outsourced team also ensures that you are not wavering from your task at hand and are fully immersed in the project. All billing and invoicing-related tasks would be handled by the outsourced team and you receive payments on time. You have to update the team of the client contracts, billing schedules, reminders to be set, and follow-up criteria’s once and it would be done as a routine job.

It would be wise to invest in an outsourced team to reduce costs on mailing, printing, paper, and manpower-hours invested to bill and invoice the client. All processes relative to financial services would be handled in the backdrop without you being worried about the cash flow.

11. Ensure you have a Collection Policy

In most cases you get paid either on time or late. There are cases when you would be paid very late, but are paid nonetheless. There are situations where even after frequent late fees and reminders your clients don’t honor their invoices.

In these types of cases, you can ask your attorney to send a letter or make use of debt collections agencies. Be careful though, you are not trying to damage your relationship with the client. It may be that the client just forgot or the intern/secretary was inattentive in process your invoice.

Conclusion

For these tips to work there needs to be open communication between you and your client. While you can’t guarantee that these will work, you should prevent late payments. These tips will work with most clients and give you peace of mind.

Irrespective of how you minimize the problem, you should make sure your clients know your terms and conditions, billing and invoicing details, and other agreements. Conveying clearly with no misinterpretations gives you the advantage when you follow-up with clients for late payments and late fees.

Whatever steps you take, always have a clear-cut collections policy. This helps you to resolve unfavorable situations if they occur at all. Many customers are cooperative and pay their bills on time or late.

Never, ever undervalue the ability of preserving a harmonious and professional relation with your customers. Regardless of the frustration, always keep your cool, and be respectful when reviewing and reminding about invoices that have been pending for long.

Topics: Accounting , Bookkeeping Services


Top 5 Essential Account Payable Trends to Focus on in 2019

Posted on 29/05/2019

It is rather an accepted norm to view Accounts Payable as a traditional mandate. However, each passing year we witness fleeting trends that influence and impact the outcomes of Accounts Payable. As we stand midway across 2019, now is as good a time as any to assess and analyse the strategies and trends that have made a difference this year. With trends and tactics evolving every day, it is highly critical to stay abreast and lead from the front to make a difference.

The forecast of 2019 looks very promising with the substantial impetus provided by today’s technology. However, leveraging these offerings and transforming them into tangible results is what would make all the difference at the end of the day.

Here are the top 5 essential  Account Payable trends to look out for in 2019:

1.Accounts Payable Automation

The crux of the efficiency of Accounts Payable stems from the competence of the invoice routing and data entry. A lot depends on the precision with which these tasks are undertaken. It has also been discovered, in a recent study that the two biggest challenges within Accounts Payable were the manual data entry and the manual dependencies of invoice approval.

In an attempt to increase efficiency, organizations are now transitioning towards automation. Automation would simplify the entire process and eliminate any room for human errors. Automation takes the top spot in terms of the Accounts Payable trends to watch out for in 2019.

Some of the outcomes of automation that can positively impact the business are:

  • Swifter invoice approval rates
  • Reduced processing costs
  • Heightened visibility across the entire AP process
  • Enhanced productivity

2.Using Big Data as Spearhead

How much data does your organization have lying around without being tapped into? It is highly probable that you have enormous amounts of data that you barely feel the need for. The data if appropriately used by the Account Payable teams could be a total game changer. The data can be leveraged to completely transform the process of Accounts Payable in your organization. Big Data is no longer just a buzzword. To stay on top and keep up with evolving trends, it would be quintessential to make good use of the data that you have at your disposal.

An analytical study into the dynamics of the approval of an invoice along with the time taken can help shed greater insights into the overall process. Spend analysis reports can help assess the financial well-being of the organization. This in turn can instate transparency and help improve the cash management.

3.The all-silver Cloud

Every dark cloud has a silver lining, doesn’t it? Now imagine an all silvery cloud… Looking good eh?

Well, studies show that over 58% of large companies use cloud computing. Generally, when a new technology debuts, it brings along varying degrees of cynicism and apprehension. But today, cloud has become the norm. Operating on a subscription-based service model, cloud is also highly cost effective. Records also show that companies that migrated to cloud have shown a growth in revenue by 15%.

The accessibility that comes with cloud can be a real key differentiator. Managers being able to remotely access, review and approve invoices can drastically bring down that time involved. Also, unlike AP software that may periodically require updates, at times even leaving the software temporarily obsolete. Cloud computing also ensures high level of data security.

4.Fraud Prevention

A report tells that about 86% of organizations have had at least one incident of fraud in the past two years. The report also goes on to state that, all the companies, regardless of the incidents hold fort and strengthen their security features consistently. Organizations don’t generally roll back to an older state threatened by these attacks.

The rise of modern computing technologies has almost always been parallelly accompanied by growing threats and vulnerabilities. As 2019 promises to be a big year for Accounts Payable, it is also going to be clouded with the evolving security challenges. These threats, when circumvented can pave way to swifter and more reliable monetizing avenues.

One of the easiest ways to reduce fraud is migrating completely to digital transactions and getting rid of paper checks. It has also been studied that digital transactions are capable of reducing fraud by at least 10 times as opposed to conventional methods. Investing in a fully automated procure-to-pay solution should help voraciously combat fraud.

This could be the year that Accounts Payable finally sheds its cost centric stature to unveil a more profit centric stature.

5.Evolving Skill set in Accounts Payable

The transition from a technology to another is not as straightforward as it sounds. It doesn’t just take effect after installation of the requisite hardware and software. It involves a lot more than just setting up the system. The demand for new skill sets will necessitate employee training and skill upscaling. From a more manual skill set of data entry the demand would shift over to more cerebral skillsets like data interpretation and business analysis.

It is also likely that skills like change management, software administration, performance analytics would be prerequisite on the resume’ of an accounts payable manager.

 

Why Velan?

With a legacy of proven proficiency spanning across a decade, Velan is equipped with a veritable pool of talents and skill sets that cater to the evolving needs of today’s technology driven world.

Talk to our Experts today [CTA] and give your business the smooth sailing it deserves!!!

 

Citation 1 :  Accounts Payable : https://www.levvel.io/resources/report/pitching-roi-for-accounts-payable-automation

Citation 2: Cloud : https://www.mediusflow.com/en/untapped/articles/innovation/ap-solutions-in-cloud-vs-on-premise

Citation 3: Fraud Prevention : https://strategictreasurer.com/2017-treasury-fraud-controls

Topics: Accounting , Accounts Payables


Are you having trouble pricing your bookkeeping services?

Posted on 06/03/2019

Have you ever wondered if you’re getting the most out of your bookkeeping service provider? With the hourly rates almost becoming the convention of pricing, have you ever considered that much of this would be at the mercy of the bookkeeper’s skill set and tactfulness. There’s no real pricing panacea when it comes to bookkeeping services. The hourly pricing mechanism may make sense in the case of certain larger firms with enough man power to tussle through the stages after the bookkeeper clocks out. However, if you are just starting up or own a small business, it would rather be sensible to have someone work beyond the hourly confines.

Bookkeeping services

Now that you’ve set up your business and have everything rolling except your books. It would be tempting to try saving a few dollars by swinging your axe at keeping the books relevant. As adventurous as it may sound, it requires a prescribed set of skills. Also, if things go awry, you may end up spending more than what you would have on a bookkeeper.

So how do you tailor the bookkeeping services to your requirements with optimal pricing? There are a multitude of variables that need to be accounted for before deciding upon the type of bookkeeping service you may require. Variables like company size and lifecycle, number of monthly transactions, number of employees and how payroll is processed, number of expense accounts, credit cards, invoices to send out, bills to pay, number of balances sheets to reconcile will help you understand if you require a full-time bookkeeper or if a part-time gig would suffice.

In the early stages, most small businesses are chiefly concerned with compliance – paying bills, getting paid, recording transactions, ensuring payroll accuracy and following state and federal regulations. However, over time they start putting more emphasis on the need for timely, accurate financial reports and intelligence. At this juncture the business will demand more advanced bookkeeping services as the need to make more data-driven decisions will increase.

So, the first question you need to ask yourself is whether you just need compliance – basic bookkeeping – or if you’re ready to upgrade to advanced bookkeeping that will help you drive increased profits improved cash flow and growth. Since both require very different levels of effort and skillset as you can imagine, the cost for advanced bookkeeping services is much higher.

Role of a Bookkeeper in a small Business:

The pivotal role of bookkeepers is maintaining your books closely every day. They generally do all data entry into accounting ledgers or software.

Bookkeepers focus on recording financial transactions of a business through maintaining records, tracking transactions, and creating financial reports. Also, if need be, they also take part in other activities such as

• Entering, Coding and Paying Bills
• Creating and Sending Customer Invoices
• Collecting Past Due Accounts Receivable
• Reconciling Bank and Credit Card Accounts
• Maintaining Vendors for Accounts Payable and Clients for Accounts Receivable

Primarily, there are three choices at your disposal. And knowing how they cater to the various needs of a business will help you cut your coat according to the cloth.

1. Full time bookkeeping services:

According to Glassdoor, listings in cities with high cost of living show that full time bookkeepers charge as much as $70,000, excluding the perks, health insurance, paid vacations and overhead involved. A full-time bookkeeper will handle the day to day accounting functions for your office. Although, keeping your books in order and up-to-date is the foundation of the financial strength of any business, for a small or medium business spending $70K on bookkeeping would be practically pointless.

2. Part-time bookkeeping services:

The rates of part-time bookkeeper vary widely. A rough estimate for internal part-time bookkeeper’s average at around $20/hour largely based around the job description and location. Part-time bookkeepers usually perform basic bookkeeping duties that would require supervision. If you’re one who can manage your job and do some accounting each month but need an extra hand, a part-time bookkeeper would be ideal. They can undertake tasks like inputting receipts and tracking employee time sheets, accounts receivable and accounts payable.

3. Outsourced bookkeeping services:

Outsourcing bookkeeping services is one of the most popular options for small and medium businesses these days. Just as in the case of hiring an internal bookkeeper, defining their roles and functions in a granular way will be key. You’ll have to decide upon the functions you would like to outsource and the functions you’d like to retain. The average price of outsourcing your bookkeeping vary between $500 to $2,500 a month depending on the number of transactions and complexity of services required. A key benefit of Outsourcing is it gives you the ability to customize the services you receive to your bookkeeping needs.

With the unfair degree of scepticism associated with bookkeeping, many businesses are concerned about switching over to outsourcing, not understanding how the pieces stitch together. But with today’s advancements in technology, outsourcing has never been easier and safer. Outsourcing can provide advanced and less costly bookkeeping service than a typical in-house bookkeeper.
Outsourcing comes with another added advantage. Besides effective cost cutting, it also enables freeing up resources to take care of other operational roles. Outsource and free up your good employees to help focus on growth!

Velan Bookkeeping:

We at Velan are equipped with skilled accountants possessing over a minimum of 7 years of experience in the domain of bookkeeping. Available round the clock at your disposal, we cater to services with utmost sensitivity and sensibility that the work demands. With encomiums and testimonials speaking for themselves, one needn’t think twice before calling us. Our pricings are highly competitive and guarantee international standards in terms of delivery. We cost less than an in-house accountant’s salary exclusive of his paid vacations, incentives and bonuses. Some of the services we provide are listed below:
a. Bank Reconciliation
b. Statement of Assets and Liabilities
c. Accounts Receivable and Payable
d. P & L Statements
e. Payroll Services
f. Tax Preparation

Call us today!!! And give your business the head start that it deserves!

Topics: Accounting , Bookkeeping Services